Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • SpiderMam
    • By SpiderMam 17th Jun 05, 12:56 PM
    • 5Posts
    • 1Thanks
    SpiderMam
    Selling Pension
    • #1
    • 17th Jun 05, 12:56 PM
    Selling Pension 17th Jun 05 at 12:56 PM
    Hi,
    I have now heard that we can sell private pensions that are sitting doing nothing. Is this true? Does anyone know how I would go about selling my pension.

    Thanks
Page 1
  • EdInvestor
    • #2
    • 17th Jun 05, 1:07 PM
    • #2
    • 17th Jun 05, 1:07 PM
    Nope, not allowed AFAIK.
  • ReportInvestor
    • #3
    • 17th Jun 05, 1:33 PM
    • #3
    • 17th Jun 05, 1:33 PM
    Unless SpiderMam mean transfer to a lower cost / better performing fund?
  • Titan
    • #4
    • 20th Jun 05, 10:18 PM
    • #4
    • 20th Jun 05, 10:18 PM
    Hi,
    I have now heard that we can sell private pensions that are sitting doing nothing. Is this true? Does anyone know how I would go about selling my pension.

    Thanks
    by SpiderMam
    You can't sell a pension, however you can transfer it virtually anywhere within the pension enviroment.
    • Pal
    • By Pal 21st Jun 05, 9:30 PM
    • 2,062 Posts
    • 731 Thanks
    Pal
    • #5
    • 21st Jun 05, 9:30 PM
    • #5
    • 21st Jun 05, 9:30 PM
    But under no circumstances can you transfer it to another person in return for cash. i.e. you can't sell it.
    • sleepless saver
    • By sleepless saver 21st Jun 05, 11:09 PM
    • 2,628 Posts
    • 2,368 Thanks
    sleepless saver
    • #6
    • 21st Jun 05, 11:09 PM
    • #6
    • 21st Jun 05, 11:09 PM
    Maybe the OP is thinking about April 2006 change to let you commute a trivial pension fund (less than £15k I think) to a lump sum if you're aged 60 to 75?
  • myquadbike
    • #7
    • 18th Nov 08, 1:37 PM
    • #7
    • 18th Nov 08, 1:37 PM
    How strange, how the parameters can change. You can now unlock capitol from your pension of say 25% as long as you are over 50. In my case, i started my pension in 1991 and was 25 years old, and the basis of my pension was that i could start getting my pensionable benefits at the age of 45, as that was the predicted year i want to retire. Now i have found that i can not only NOT take the pension early at the stated start age of 45, but it is not classified under the mis-sold pension plans that were investigated from this particular year.
    • dunstonh
    • By dunstonh 18th Nov 08, 1:55 PM
    • 84,103 Posts
    • 49,091 Thanks
    dunstonh
    • #8
    • 18th Nov 08, 1:55 PM
    • #8
    • 18th Nov 08, 1:55 PM
    You can now unlock capitol from your pension of say 25% as long as you are over 50.
    The FSA has a very dim view of those that used to promote pension unlocking. Most got fined and are no longer in business.

    That said, you wre always able to access 25% of your pension from age 50. Nothing changed on that front.

    i started my pension in 1991 and was 25 years old, and the basis of my pension was that i could start getting my pensionable benefits at the age of 45, as that was the predicted year i want to retire.
    Were you in (or are in) a special occupation that allowed earlier retirement?


    Now i have found that i can not only NOT take the pension early at the stated start age of 45, but it is not classified under the mis-sold pension plans that were investigated from this particular year.
    It wouldnt be classed as a mis-sale as advice is given based on HMRC rules that are in place at the time. You cannot be held accountable for changes in the future that were not known about.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • nickmaynard132
    • #9
    • 25th Jan 09, 11:37 AM
    Selling Pension
    • #9
    • 25th Jan 09, 11:37 AM
    Hi there are a number of sites where you can sell (unlock) your pension. This involves getting out tax free cash to the value of up to 25% of the fund value. It is suggested that this is a last resort but in the current climate might be better than borrowing more money
    • dunstonh
    • By dunstonh 25th Jan 09, 12:45 PM
    • 84,103 Posts
    • 49,091 Thanks
    dunstonh
    Hi there are a number of sites where you can sell (unlock) your pension. This involves getting out tax free cash to the value of up to 25% of the fund value. It is suggested that this is a last resort but in the current climate might be better than borrowing more money
    Originally posted by nickmaynard132
    If they are indeed promoting that then they are heading for trouble with the FSA. The FSA recently fined a firm over £1 million for doing that sort of thing without justification. You are not unlocking your pension. You are commencing your retirement benefits much earlier and whilst you can get 25%, you will be reducing your retirement income, reducing death benefits to your spouse/dependents and almost certainly using a more expensive pension plan to do it.

    The FSA treat what you suggest as a high risk transaction.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • EdInvestor
    Hi there are a number of sites where you can sell (unlock) your pension. This involves getting out tax free cash to the value of up to 25% of the fund value. It is suggested that this is a last resort but in the current climate might be better than borrowing more money
    Originally posted by nickmaynard132

    Anybody can take benefits from a private pension, including 25% tax free cash at the age of 50, this has been legal for years.What has changed recently is that you now are not required to take an annuity income with the other 75% - you can leave it invested to grow for later.

    This involves moving the pension into "income drawdown" (which has also been available for years, but formerly you were required to take a minimum income when in drawdown.)

    Note that the minimum age for doing this will rise to 55 next year.It is a very useful option for many people, especially those who find themselves redundant and unemployable in the 50s but unable to draw state pensions until 65,and facing harsh penalties if they take company pensions early.
  • MACH67
    Under 50!
    I have had a private pension for many years. I have been made redundant (nearly a year ago now) and have had no luck finding employment. My house could be at risk if I don't find a solution soon.

    Is there anyway I can access the pension funds as waiting till I'm 50 and homeless doesn't really appeal
    • dunstonh
    • By dunstonh 29th Sep 09, 11:35 AM
    • 84,103 Posts
    • 49,091 Thanks
    dunstonh
    Is there anyway I can access the pension funds as waiting till I'm 50 and homeless doesn't really appeal
    No. Sorry.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • Gnd
    Is there a limit to the amount you can put in if you have a non-contributary pension? I am concerned I am adding over the legal limit and want to stop if this is the case?
    • dunstonh
    • By dunstonh 15th Apr 10, 11:09 PM
    • 84,103 Posts
    • 49,091 Thanks
    dunstonh
    100% of your income (although there are limits to be aware of if you earn over £130k or your contributions in the year are getting into that range)
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • jamesd
    Gnd, if it's a lot of money the main concern is checking that you're getting the best available deal, since best deals depend to some extent on how much money is involved. In particular paying a fee to an IFA can get a significantly better deal than some other approaches, like commission or some do it yourself options. Depends on just how much money is involved and where you want to invest.
  • a440dc
    Trivial amounts
    I took my 25%, at 53yrs age, and have had an annual payment since.

    I have been told that the "Trivial" amount has now increased to £18,500, but this is still frustrating to me as it means I cannot access the balance of this small fund (currently £25k) which would be more useful to me now since I have been made redundant and need £20k to finish building my retirement property.

    I would happily take a reduction in fund value down to the allowed £18,500 in order to have the full amount now but even this is not permitted...

    It seems that it can't be sold and can't be withdrawn, as a lump....seems that, in the UK, we have no control over our money!!!
    • dunstonh
    • By dunstonh 13th Aug 10, 6:30 PM
    • 84,103 Posts
    • 49,091 Thanks
    dunstonh
    I took my 25%, at 53yrs age, and have had an annual payment since.
    Hopefully you didnt do that using an annuity. The rate would be poor.

    I have been told that the "Trivial" amount has now increased to £18,500, but this is still frustrating to me as it means I cannot access the balance of this small fund (currently £25k) which would be more useful to me now since I have been made redundant and need £20k to finish building my retirement property.
    its too late now for you anyway. Once you cystallise a pension you cannot exercise triviality later (theoretically possible in some cases but extremely rare).

    It seems that it can't be sold and can't be withdrawn, as a lump....seems that, in the UK, we have no control over our money!!!
    You have loads of control of your money. However, like any trust arrangement, if you place the money in trust you have to comply with the rules of the trust. Pensions are a master trust and the requirements are to provide an income in retirement. Not to utilise 15 or so years before hand for other purposes. If you have other requirements in retirement that a pension cannot meet then you dont use a pension.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • a440dc
    Hi
    Hi Dunstanh

    Thanks for the comments.

    Actually I was hoping that by taking an annual amount the total would decrease and eventually meet the "Trivial" amount which seems to be increasing at the rate of £500 per year.

    I was told that, at some time, I would be able to draw the whole balance if this ever occurred.....maybe, as with so many things financial, I was misinformed.

    I never chose to have this money locked in this way it was enforced by a company for whom I was working some years ago.
  • a440dc
    Forgot to say that the maximum annual allowance I am offered is £1800 gross (£1350.00 nett).
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,879Posts Today

6,935Users online

Martin's Twitter
  • Today's twitter poll: What proportion of your usual monthly spending do you do in cash (ie not plastic, bank transfer, cheque etc)

  • RT @GemmaRobyn: @MartinSLewis my parents earned +£50k but it didn't mean they could afford to help. I worked 2 jobs at uni to get by. Why b?

  • RT @JackieMutlow: @MartinSLewis @GMB Daughters loans not enough we pay 2 months rent a year (2x £410) AND £250 a month for food, train etc?

  • Follow Martin